A. Appendix A.

Philippine Seven Corporation and Subsidiaries Consolidated

Comprehensive Income (2017-2018)

PHILIPPINE SEVEN CORPORATION AND SUBSIDIARIES

Consolidated Statement of Comprehensive Income
For the year ended December 31 (2017-2018)

2018 2017
Sales 21,950,065 18,503,831

Expenses
Cost of Merchandise Sales
Beginning Inventory 1,648,747 1,278,865
Net Purchases 17,223,990 14,635,767
Less: Ending Inventory 2,126,028 1,648,747
Total Cost of Merchandise Sales 16,746,704 14,265,885

General and Administrative Expenses 2,730,522 2,245,241

Interest Expense 11,312 11,312
Other Expenses 6,519 6,519
Total Expenses 19,495,057 16,528,957
Income before Income Tax 2,455,008 1,974,875
Less: Provision for Income Tax 736,502 592,462

Net Income 1,718,505 1,382,412

 B. Appendix A. Philippine Seven Corporation and Subsidiaries Consolidated
Financial Position (2017-2018)

PHILIPPINE SEVEN CORPORATION AND SUBSIDIARIES

Consolidated Statement of Financial Position
As of December 31 (2017-2018)

        2018 2017
ASSETS
Current Assets
Cash and Cash Equivalents 1,590,833.33 984,479.49
Short-term investments 5,643.34 5,592.33
Receivables 818,923.02 589,190.99
Inventories 2,126,028 1,648,747.31
Prepayments and other current assets 307,225.58 271,001.23
Total Current Assets     4,848,652.94 3,499,011.36

Noncurrent Assets
Property and equipment 3,375,256.98 3,231,237.16
Deposits 468,847.82 416,878.15
Defferred tax assets-net 127,271.73 77,892.96
Goodwill and othre noncurrent assets 235,632.30 229,700.07
Total Noncurrent Assets   4,207,008.84 3,955,708.34

TOTAL ASSETS     9,055,661.78 7,454,719.69

LIABILITIES AND EQUITY

Current Liabilities
Bank loans 205,000.00 604,791.22
Current portion of long-term debt 185,833.33 162,500.00
Accounts payable and accrued expenses 2,753,690.53 2,090,592.21
Current portion of contract liabilities 151,801.14 0.00
Income tax payable 163,724.10 156,031.70
Other current liabilities 1,166,286.77 816,116.95
Total Current Liabilities   4,626,335.87 3,830,032.08
Noncurrent Liabilities
Long-term debt- ne tof current portion 588,712.94 372,916.67
Deposits payable 144,528.34 130,874.91
Contract liabilities 96,772.74 0.00
Net retirement obligations 58,879.23 78,784.75
Cumulative redeemable preferred shares 3,000.00 3,000.00
(authorized and issue- 60000 shares P100
par)
Deferred revenue - 25,361.55
Total Noncurrent Liabilities   891,893.25 610,937.88
Total Liabilities     5,518,229.12 4,440,969.96

Equity
Common Stocks 378,552.27 378,552.27
Additional paid-in Capital 146,762.52 146,762.52
Retained earnings
Appropriated 2,550,000.00 2,175,000.00
Unappropriate
d 455,984.89 333,096.71
Other comprehensive income(loss) 7,594.61 -18,200.14
Cost of own shares held in treasury -1,461.62 -1,461.62
Total Equity     3,537,432.66 3,013,749.74

TOTAL LIABILITIES AND EQUITY   9,055,661.78 7,454,719.69

 C. Appendix C. Philippine Seven Corporation and Subsidiaries Payback Period Schedule

PHILIPPINE SEVEN CORPORATION AND SUBSIDIATIES

Payback Schedule
For the year 2018-2022

PAYBACK SCHEDULE 2018 2019 2020 2022

891,893. 1,449,291. 1,862,066. 1,862,066.
Loans Payable, Beg. 25 47 60 60
Interest
5% 44,594. 72,464. 93,103. 93,103.
66 57 33 33
936,487. 1,521,756. 1,955,169. 1,955,169.
  91 04 93 93
Payment Schedule
1,943,857.
Principal - - - 93
11,311. 11,312. 11,312. 11,312.
Interest 95 00 00 00
11,311. 11,312. 11,312. 1,955,169.
TOTAL 95 00 00 93

925,175. 1,510,444. 1,943,857.

Loans Payable, Beg. 96 04 93 0.00
 D. Appendix C. Philippine Seven Corporation and Subsidiaries Statement of Cash Flow
2018

PHILIPPINE SEVEN CORPORATION AND SUBSIDIARIES

Statement of Cash Flow
For the year ended December 31, 2018

CASH FLOW FROM OPERATING ACTIVITIES

Adjustments
Net Income 1,718,506.00
Amortization 248.00
Depreciation 324,598
Short-term investments 5643.34
Receivables 818923.02
Inventories 2126027.67
Prepayments and other current assets 307225.58
Bank loans 205,000.00
Current portion of long-term debt 185,833.33
Accounts payable and accrued expenses 2,753,690.53
Current portion of contract liabilities 151,801.14
Income tax payable 163,724.10
Other current liabilities 1,166,286.77
CASH FLOW PROVIDED BY OPERATING ACTIVITIES 3,411,868.25
CASH FLOW FROM INVESTING ACTIVITIES
Property and equipment 3,886,125.98
Deposits 979,716.82
Defferred tax assets-net 638,078.73
Goodwill and othre noncurrent assets 746,439.30
CASH FLOW USED IN INVESTINGACTIVITIES   6,250,360.84
CASH FLOW FROM FINANCING ACTIVITIES
Long-term debt- ne tof current portion 588,712.94
Deposits payable 144,528.34
Contract liabilities 96,772.74
Net retirement obligations 58,879.23
Cumulative redeemable preferred shares 3,000.00
(authorized and issue- 60000 shares P100 par)
Deferred revenue -
Common Stocks 378,552.27
Additional paid-in Capital 146,762.52
Retained earnings
Appropriated 2,550,000.00
Unappropriated 455,984.89
Other comprehensive income(loss) 7,594.61
Cost of own shares held in treasury -1,461.62
NET CASH FLOW FROM FINANCING ACTIVITIES   4,429,325.91
Increase/Deacrease of Cash Flow 1,590,833.32
Add: Beginning Cash -
NET CASH FLOW END     1,590,833.32
 E. Appendix D. Philippine Seven and Subsidiaries. Financial Ratios (2017-2018)

2018 2017

Liquidity Ratio Formula

Current Ratio CA/CL 1.05 0.91

Quick Ratio (CA-Inventory)/CL 0.59 0.48
Leverage Ratio

Debt-to-Total Assets 0.61 0.60

Ratio TD/TA
56% 47%
Debt-to-Equity Ratio TD/SHE
Asset Management
Ratios
10 11
Inventory Turnover Sales/FG Inventory
5 5
Fixed Assets Turnover Sales/FA
2 2
Total Assets Turnover Sales/TA

Profitability Ratios
(Product Sales- N/A N/A
Gross Sales Margin COGS)/Product Sales
(Service Income-Cost N/A N/A
of Service)/Service
Gross Service Margin Income
(Total Sales-Cost of 23.71% 22.90%
Gross Profit Margin Sales)/Total Sales
11.18% 10.67%
Opening Profit Margin EBIT/Sales
7.83% 7.47%
Net Profit Margin NI/Sales
18.97% 18.54%
ROA NI/TA
NI/Total Stockholders' 48.58% 45.87%
ROE Equity
27.11% 26.49%
Basic Earning Power EBIT/TA

Growth Ratios
annual percentage N/A N/A
Product Sales growth
annual percentage N/A N/A
Service Income growth
annual percentage 18.62% 13.76%
Total Sales growth
16.23% 12.11%
Net Income annual percentage
 growth
annual percentage N/A N/A
Cost of Goods Sold growth
annual percentage N/A N/A
Cost of Service growth
annual percentage 17.39% 11.31%
Cost of Sales growth

Other Ratios
2.56 2.47
Equity Multiplier TA/CE
Modified Du Pont PMR x Asset Turnover 40% 37%
Equation x Equity Multiplier

F. Appendix E Philippine Seven Corporation and Subsidiaries Projected Consolidated

Comprehensive Income (2019-2020)
 PHILIPPINE SEVEN CORPORATION AND SUBSIDIARIES
Projected Comprehensive Income
As of December 31 (2018-2020)

2020 2019 2018

29,632 25,503,780
Sales ,842.59 .52 21,950,065.00

Expenses
Cost of Merchandise
Sales
Beginning Inventory 2,855,043.00 2,126,028.00 1,648,747.00
22,569,250.7
Net Purchases 7 19,716,301.88 17,223,990.46
Less: Ending
Inventory 3,834,037.25 2,855,043.00 2,126,028.00
Total Cost of 21,590,256.5
Merchandise Sales 2 18,987,286.88 16,746,709.46

General and
Administrative
Expenses 3,972,686.45 3,293,555.34 2,730,521.75
Interest Expense 11,311.95 11,311.95 11,311.95
Other Expenses 6,519.38 6,519.38 6,519.38
25,580,774.3
Total Expenses 0 22,298,673.55 19,495,062.55
Income before
Income Tax 4,052,068.29 3,205,106.97 2,455,002.45
Less: Provision for
Income Tax 1,215,620.49 961,532.09 736,500.74

Net Income 2,836,447.80 2,243,574.88 1,718,501.72

G. Appendix G. Philippine Seven Corporation and Subsidiaries Projected Consolidated

Financial Projection (2019-2020)
 PHILIPPINE SEVEN CORPORATION AND SUBSIDIARIES
Projected Statement of Financial Position
As of December 31 (2018-2020)

2020 2019 2018

ASSETS
Current Assets
Cash and Cash Equivalents 2,147,643.46 1,848,389.24 1,590,833.33
Short-term investments 7,618.57 6,557.00 5,643.34
Receivables 1,105,555.59 951,506.66 818,923.02
Inventories 3,834,037.00 2,855,043.00 2,126,028
Prepayments and other current assets 414,758.10 356,965.41 307,225.58
Total Current Assets     7,509,612.73 6,018,461.31 4,848,652.94

Noncurrent Assets
Property and equipment 4,556,636.11 3,921,711.09 3,375,256.98
Deposits 632,950.00 544,754.28 468,847.82
Defferred tax assets-net 171,818.32 147,877.03 127,271.73
Goodwill and othre noncurrent assets 318,106.35 273,781.17 235,632.30
Total Noncurrent Assets   5,679,510.77 4,888,123.57 4,207,008.84

TOTAL ASSETS     13,189,123.50 10,906,584.88 9,055,661.78

LIABILITIES AND EQUITY

Current Liabilities
Bank loans 276,752.38 238,189.50 205,000.00
Current portion of long-term debt 250,877.16 215,919.75 185,833.33
Accounts payable and accrued expenses 3,717,514.18 3,199,513.03 2,753,690.53
Current portion of contract liabilities 204,933.30 176,377.74 151,801.14
Income tax payable 221,029.44 190,231.03 163,724.10
Other current liabilities 1,574,500.68 1,355,108.59 1,166,286.77
Total Current Liabilities   6,245,607.13 5,375,339.64 4,626,335.87

Noncurrent Liabilities
Long-term debt- ne tof current portion 794,769.30 684,025.56 588,712.94
Deposits payable 195,114.94 167,927.48 144,528.34
Contract liabilities 130,644.33 112,440.25 96,772.74
Net retirement obligations 79,487.64 68,411.77 58,879.23
Cumulative redeemable preferred shares 4,050.03 3,485.70 3,000.00
(authorized and issue- 60000 shares P100 par)
Deferred revenue 658,000.36 413,000.70 -
Total Noncurrent Liabilities   1,862,066.60 1,449,291.47 891,893.25
Total Liabilities     8,107,673.73 6,824,631.11 5,518,229.12

Equity
Common Stocks 378,552.27 378,552.27 378,552.27
Additional paid-in Capital 146,762.52 146,762.52 146,762.52
Retained earnings
Appropriate
d 2,550,000.00 2,550,000.00 2,550,000.00
Unappropriated 2,000,002.00 1,000,506.00 455,984.89
Other comprehensive income(loss) 7,594.61 7,594.61 7,594.61
Cost of own shares held in treasury -1,461.62 -1,461.62 -1,461.62
Total Equity     5,081,449.77 4,081,953.77 3,537,432.66

TOTAL LIABILITIES AND EQUITY   13,189,123.50 10,906,584.88 9,055,661.78

H. Appendix H. Philippine Seven Corporation and Subsidiaries Projected Financial Ratios

(2019-2020)
 2020 2019

Liquidity Ratio Formula

Current Ratio CA/CL 1.20 1.12

Quick Ratio (CA-Inventory)/CL 0.59 0.59
Leverage Ratio

Debt-to-Total Assets 0.61 0.63

Ratio TD/TA
60% 67%
Debt-to-Equity Ratio TD/SHE
Asset Management
Ratios
8 9
Inventory Turnover Sales/FG Inventory
5 5
Fixed Assets Turnover Sales/FA
2 2
Total Assets Turnover Sales/TA

Profitability Ratios
(Product Sales- N/A N/A
Gross Sales Margin COGS)/Product Sales
(Service Income-Cost N/A N/A
of Service)/Service
Gross Service Margin Income
(Total Sales-Cost of 27.14% 25.55%
Gross Profit Margin Sales)/Total Sales
13.67% 12.57%
Opening Profit Margin EBIT/Sales
9.6% 8.8%
Net Profit Margin NI/Sales
21.51% 20.57%
ROA NI/TA
NI/Total Stockholders' 55.82% 54.96%
ROE Equity
30.72% 29.39%
Basic Earning Power EBIT/TA

Growth Ratios Formula

annual percentage N/A N/A
Product Sales growth
annual percentage N/A N/A
Service Income growth
annual percentage 16.19% 16.19%
Total Sales growth
annual percentage 26.43% 30.55%
Net Income growth
 annual percentage N/A N/A
Cost of Goods Sold growth
annual percentage N/A N/A
Cost of Service growth
annual percentage 13.71% 13.38%
Cost of Sales growth

Other Ratios
2.60 2.67
Equity Multiplier TA/CE
Modified Du Pont PMR x Asset Turnover 50% 47%
Equation x Equity Multiplier